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3 "Internet of Things" Stocks to Buy Right Now

The "Internet of Things" essentially connects industrial and medical devices, vehicles, and an array of consumer and household products to allow for advanced monitoring, analytics, and more. Everyday products and machines can now be embedded with sensor technology to process data or interact with other electronic devices.

Consumer-level IoT products include things like Amazon's AMZN Echo "smart speakers," wearable motion and activity tracking products from the likes of Fitbit FIT and Apple AAPL , and advanced in-car technology. On the commercial side of the IoT market, industrial manufacturers have started to implement sensors into machines to track performance and efficiency

One of the more obvious plays here for investors is semiconductor stocks, as chipmakers should be able to benefit from the growth of connected devices. But chip stocks are often cyclical. With that said, IoT is set to become nearly ubiquitous, which means investors can try to profit from its growth in countless industries and firms.

Today we've highlighted three stocks with a Zacks Rank #2 (Buy) or better that could be poised for further IoT growth soon.

DexCom is a medical device firm that offers those with diabetes the chance to place a small sensor just beneath their skin to help them continuously monitor their glucose levels through a companion device, or via an application on compatible smartphones or smartwatches. The firm's continuous glucose monitoring devices don't require finger pricks and are part of a new wave of medical tech that could one day see people around the world monitor their health at all times for a more effective preventive medical future. San Diego, California-based DexCom is coming off a better-than-projected first quarter of 2019 that helped management feel confident enough to raise its full-year outlook.

DXCM stock has climbed 75% over the past two years. However, DexCom shares currently rest roughly 22% below their 52-week intraday high of $156 a share, which could give them some room to run. The company's current adjusted full-year earnings are projected to soar 153% to reach $0.76 per share, on the back of nearly 25% revenue growth that would see it reach $1.29 billion. DexCom has also seen its longer-term earnings estimate revision activity trendy heavily in the right direction since i t report ed its Q1 results on May 1. This positivity helps DXCM earn a Zacks Rank #2 (Buy) right now. The firm also sports an "A" grade for Growth in our Style Scores system.

Honeywell is one of the quintessential IoT firms. The Morris Plains, New Jersey-based company makes smart, connected-household devices that include everything from thermostats to security offerings and much more. On top of that, the firm sells enterprise level IoT products and solutions for the aerospace industry, manufacturing, oil and gas, healthcare, and the list goes on. Honeywell is coming off top and bottom-line beats in Q1 2019. Investors should note that HON's revenue fell last quarter due in large part to the impact of spin-offs of some of its businesses in 2018. With that said, Honeywell's revenues jumped 8% organically last quarter on the back of strength in its long-cycle businesses such as U.S. defense, commercial aerospace, and warehouse and process automation.

Last quarter, management also raised the firm's second-quarter and full-year 2019 guidance. More recently, Honeywell declared a regular quarterly dividend of $0.82 per share, which will be payable on June 14. Meanwhile, HON's dividend yield currently rests at 1.95% and its stock price has soared 28% in 2019, hitting new 52-week highs along the way. Honeywell is a Zacks Rank #2 (Buy) at the moment and has earned a ton of positive earnings estimate revisions for fiscal 2019 and 2020.

Like its IoT peers, Microsoft is coming off a better-than-projected quarter that saw its Intelligent Cloud business sales jump 22%. More specifically, Microsoft's key Azure division sales skyrocketed 73%. Microsoft's expansion into new growth areas, such as cloud and IoT, along with the continued strength of its core businesses, is projected to help MSFT post 13.1% revenue growth in fiscal 2019. On top of that, our Zacks Consensus Estimate calls for the company's fiscal 2020 revenues to jump 10.6% higher than our current-year estimate to reach $138.09 billion.

At the bottom end of the income statement, MSFT's full-year earnings are projected to surge 18%, with 2020's EPS figure expected to climb 11.4% above our 2019 estimate. Microsoft has also seen a ton of positive longer-term earnings estimate revision activity since it posted its Q3 2019 results in late April, which helps it earn a Zack Rank #2 (Buy). Moreover, MSFT is a dividend payerthat has paid out a $0.46 per share quarterly dividend throughout its fiscal 2019, up 9.5% from the prior year's quarterly payout. Meanwhile, the company's dividend yield rests at 1.48%, with Microsoft shares up 24% in 2019 and 81% over the last two years.

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